The Point at Which Total Cost Equals Total Revenue and the Business

question 45

Multiple Choice

The point at which total cost equals total revenue and the business is neither making or losing money is known as

• A) The profit area
• B) The loss area
• C) The breakeven point
• D) The profit point

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Definitions:

Account Form

A way of presenting a balance sheet where assets are on one side and liabilities and equity are on the other.

Balance Sheet

A financial statement that summarizes a company’s assets, liabilities, and shareholders’ equity at a specific point in time.

Liabilities

Financial obligations or debts that an entity owes to other parties, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Office Supplies Expense

This refers to the cost associated with consumable supplies used within an office setting, such as pens, paper, and toner.